Karachi: Companies listed on Pakistan’s KSE-100 index reported mixed financial outcomes for the second quarter of the fiscal year 2026, with overall earnings seeing a modest increase of 3% year-over-year, while cash dividends surged by 12%, according to a recent analysis by JS Global. The index companies posted earnings of Rs456 billion, up from Rs443 billion in the same quarter last year, translating to approximately US$1.6 billion. Excluding the energy and banking sectors, profits saw a more substantial 15% increase.
According to JS Global, the banking sector’s earnings declined by 3% year-over-year and 9% quarter-over-quarter, totaling Rs148.9 billion. This drop was mainly due to a decrease in non-interest income and higher operating expenses. The exploration and production (Eand P) sector also faced challenges, with profits falling 15% year-over-year to Rs74.2 billion, influenced by declining gas production and crude oil prices.
The fertilizer and cement sectors witnessed decreases in profitability, with the former down 12% year-over-year at Rs43.1 billion, and the latter experiencing a 3% drop to Rs45.4 billion. In contrast, the automobile sector saw a robust 36% year-over-year profit increase, driven by a surge in passenger car sales. The food and personal care sector recorded a significant 3.6-fold increase due to one-off gains, while the pharmaceutical sector’s earnings rose 61% year-over-year.
Within other sectors, power and textiles posted substantial growths of 249% and 64% year-over-year, respectively. However, technology, oil marketing companies (OMCs), and chemical sectors reported declines of 48%, 41%, and 25% year-over-year, respectively. Overall, KSE-100 index earnings saw a slight sequential decrease of 1%.
Cash dividends for the quarter amounted to Rs308 billion, marking a 12% increase from Rs275 billion in the previous year, largely fueled by a significant payout from the National Bank of Pakistan (NBP). The banking sector led with dividends totaling Rs168 billion, followed by Eand Ps and fertilizers. National Bank was the largest single contributor with a payout of Rs74.5 billion. Other notable dividend announcements came from Oil and Gas Development Company, Fauji Fertilizer, and Millat Tractors, among others.